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Applications of the levelized cost concept

Author

Listed:
  • Gunther Friedl

    (Technical University of Munich (TUM))

  • Stefan Reichelstein

    (University of Mannheim
    Stanford University)

  • Amadeus Bach

    (University of Mannheim)

  • Maximilian Blaschke

    (Technical University of Munich (TUM))

  • Lukas Kemmer

    (Technical University of Munich (TUM))

Abstract

Levelized cost is a life-cycle cost measure that aggregates investment expenditures and operating costs into a unit cost figure. So far, most applications of this concept have originated in relation to energy technologies. This paper describes the role of the levelized cost concept in cost accounting and synthesizes multiple research streams in connection with electricity, energy storage, hydrogen and carbon capture. Finally, we sketch multiple potential future applications of the levelized cost concept.

Suggested Citation

  • Gunther Friedl & Stefan Reichelstein & Amadeus Bach & Maximilian Blaschke & Lukas Kemmer, 2023. "Applications of the levelized cost concept," Journal of Business Economics, Springer, vol. 93(6), pages 1125-1148, August.
    • Handle: RePEc:spr:jbecon:v:93:y:2023:i:6:d:10.1007_s11573-023-01171-7
    DOI: 10.1007/s11573-023-01171-7
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